The Timaru Herald TUESDAY, MAY 1, 1928. THE NATIONAL ACCOUNTS.

Timaru Herald, Volume CXXV, Issue 17944, 1 May 1928, Page 8

The Timaru Herald TUESDAY, MAY 1, 1928. THE NATIONAL ACCOUNTS.

Since the Minister o£ Finance has shown only a moderate surplus tor the financial year ended in March, the critics who invariably seize upon a big' surplus to accuse the Government of overtaxing- the people, will have their main line of attack countered. The Minister in an address at Cambridge last night, dealt with the principal phases of the finances of the Dominion. It was pointed out that although the Government had borrowed fairly heavily that the gross national debt has been materially reduced as far as the dead weight is concerned, and that new borrowing had been conducted witii the sole object, of providing funds for the creation of revenueproducing assets. The Minister made an effective answer to the critics who allege New Zealand is carrying a big burden of interest, the inference being that the Government is piling a heavier load on the shoulders pi the people least, able to bear it. Such was the allegation made by a Labour mein her of the liouse who visited Timaru recently. But Mr Stewart effectively disposes of such an obviously absurd statement. Moreover, the Minister made it perfectly plain that the Government’s borrowing' policy would be gradually tapered off, and in any case loans would be raised only for productive purposes. The Government is determined to reduce the dead weight of nonproductive loan indebtedness, particularly the burden of the war debt. This is an essentially sound, policy, but it can be said' that responsibility for the imposition of this load must be borne by all parties. The remarkable recovery of the Dominion is one of the wonders of the day, hut the lessons of the past should not be ignored. The future of New Zealand depends on increased production and good prices. The improved condition of the finances of the Dominion is due, of course, tp better prices being- obtained for the products of the land. Last year the oversea markets were weak, the demand was slow, and the outlook was uncertain. The result was inevitable. But the oversea, markets have, shown a wonderful: recovery, which should be lefiect'ed in-the national accounts for the current year. Nevertheless, the- people of New Zealand should not forget the past. If such a change is possible'—a. change from difficult times 1o noticeably easier monetary con-ditions—-in a short period <f twelve months, there is alloys the danger of the pendulum swinging the other way. The future, however, is not without difficulty, but there are stronggrounds for optimism in view of the markedly big advance the Dominion has* made within the. last few months towards national stability and sustained prosperity.

BEHIND CLOSED DOORS. Fox’ nearly a year the go-called businessmen’s Council has shown an amazing capacity to handle the business of the borough in a most unbusinesslike fashion. It is l questionable if any Council entered into office with such a unanimity of good washes, but it is equally certain that no Council has _ so completely failed to ‘'deliver the goods.” Criticism has been hurled at the businessmen’s Council from all quarters, but as far as we can remember, not a single cb airman of committee bag shown enough ‘‘punch 1 ” to defend bis department against the attacks of the critics. Presumably there is no defence! Month after month the same drift continues, but. the Council seems to; be hampered by a fatal hesitancy, and although there is so much to do — so little is done. But last evening the Council broke entirely new ground. Metaphorically shivering' in the face of unanswerable criticism the Council took sheltei 'behind closed doors. Hot satisfied to follow time-honoured precedent, the Council—the businessmen’s Council—was bluffed into insulting the Press, by making it perfectly plain that the presence of Press representatives could not be tolerated because an outsider, who happened along to the meeting, took it upon, himself tp dictate to a businessmen’s l Council. We can wad l picture wdiat. w'ould have happened in the Courts had the Bench decided tio order the galleries to be cleared. Imagine tire short shift a spectator -would receive, who presumed to tell the Bench that he would not leave until the Press representatives were ordered out pf Court,! Tire Council, if it had the backbone of anything more stable than .jelly, would have shown not only its spirit, but it would have defended the dignity of the Press. But the businessmen’s Council may be relied on to do the unexpected; to take the line of least resistance,., It is quite a new r departure that the honour of 1 be Pressi should be impugned in such .a wav. As far as the Press is concerned it needs; no special pleading' to substantiate its, claim that its representatives are absolutely 1 trust w'orthv. lienee it does not say much for the prestige of the businessmen’s Council that it can be forded ink

placing' itself in ancli an invidious position. It is just as well, however, that the citizens should realise the significance of the new move. It is a culmination of a persistent policy of suppressing information, which is being adopted by the businessmen’s Council. Almost every budget of reports of various committees which is supplied to the Press bears evidence of having passed through the hands of the censor. Yesterday, 4'h e reports showed that not only had the blue pencil been used rather 1 freely, but three full sheets had been tom cut, leaving the jagged butts attached to the comer binding. Has the businessmen’s Council appointed an official censor? If so, wbo is he; if not, who' acts as censor without authority ? It is just as well that the Council should not cherish the illusion that the citizens will tolerate such tactics. The ratepayers are vitally interested in the deliberations' of the Council, and there is one certain future for Councillor's —the representttives of the people, forsooth —who fancy they can convert the deliberations of tire civic administration into a secret society., If tbe Council has any defence to make, the time is over-ripe for the issue of an authoritative, statement in reply to the persistent and wellgrounded criticism which has been strongly voiced since the present Council created grave doubts in the minds of the ratepayers, who placed it in office, really possesses the metal of businessmen. In the meantime, we _ protest against the affront offered .'the dignity of the Press by the Council last evening, and at the same time we warn the Council of the futility of to shelter behind closed doors when the courageous facing of the critics is the only line of action .any self-respecting local governing body would take.